Gildemeister Cooperates with Mori Seiki

March 26, 2009 · Filed Under Companies, Suppliers

Gildemeister Aktiengesellschaft has signed a cooperation agreement with the Japanese machine tool manufacturer, Mori Seiki Co. LTD. (Nagoya). The cooperation covers production, purchasing and the development of machines, as well as sales and services in selected markets.

This strategic partnership allows both companies to extend their business activities. They will both benefit from short and long-term mutual advantages. The aim of this “win-win“ partnership is to achieve synergies of about 15 million euros per year for both sides.

To strengthen the alliance, a cross shareholding has been agreed. Investment in 5% of the shares each, confirms the long-term character of the cooperation. Gildemeister has already purchased 2 million Mori Seiki shares and will increase this up to a total of 4.4 million shares (5%). Mori Seiki will purchase 2.3 million (5%) Gildemeister shares, arising out of a capital increase in authorised capital excluding share options. Mori Seiki will subscribe to the Gildemeister shares at 7.93 euros per share; the closing price on 20 March 2009 was 5.73 euros. Mori Seiki will thus become the largest, single Gildemeister shareholder. In addition, reciprocal representation on competent bodies is planned.

“The world of machine tools has become global. Meeting and overcoming the challenges of the international economic crisis demands strong alliances. We will bundle our resources in order to achieve joint efficiency advantages,” said the Chairman of the Executive Board, Dr. Rüdiger Kapitza. According to the press release, the Gildemeister Management appreciates the cooperation with Mori Seiki to commonly enhance chances.